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Brazilian Ethanol Powers IndyCar Series Again

Cindy Zimmerman

brazil indyThe IZOD IndyCar Series makes its debut this weekend in South America with the Sao Paulo Indy 300 powered by Brazilian ethanol.

The Brazilian Sugarcane Industry Association (UNICA) has renewed its fuel supply agreement with the Indy Racing League for the 2010 IZOD IndyCar Series season, which opens on Sunday, March 14, with a race in Brazil’s largest city, São Paulo. Under the new agreement, the IZOD IndyCar Series will continue to utilize sugarcane ethanol to fuel its race cars, including at its signature event, the Indianapolis 500.

The agreement calls for UNICA to cover the cost of approximately 200,000 liters (53,000 gallons) of the 100 percent fuel-grade ethanol to be used by in 2010 by the IZOD IndyCar Series as well as the renewable diesel for the fleet of trucks that delivers cars, related gear and fuel for all races. The deal also calls for UNICA’s Sugarcane Ethanol brand to be featured at all Indy events.

Sugarcane ethanol will fuel 16 of the 17 IZOD IndyCar Series races in the 2010 season, including the Indianapolis 500. The only Indy race not covered by the series’ commitment to use primarily sugarcane ethanol is the Iowa Corn Indy 250, which will utilize locally-produced ethanol made from corn under a separate sponsorship arrangement.

At the inaugural Sao Paulo Indy 300, to be run on a street circuit in São Paulo, Brazil, the ethanol will be supplied by one of UNICA’s member companies, Copersucar S.A., Brazil’s largest sugar, ethanol and bioenergy conglomerate, with 36 associated sugar and ethanol mills.

Ethanol, Ethanol News, Indy Racing, International, Racing

Register Early for FEW and Win an iPod

Cindy Zimmerman

FEW 2010The preliminary agenda for the 2010 Fuel Ethanol Workshop has been announced, along with incentive to register early. Register by March 16 to save $200 and be entered in a drawing to win an iPod Touch. The winner will be announced on March 17.

The 26th Annual Fuel Ethanol Workshop & Expo features more than 120 industry professionals delivering presentations across five topic tracks. This year’s line-up was assembled from over 240 abstracts which were vigorously reviewed by a panel of nearly 40 industry professionals. The result is a compilation of presenters addressing our industry’s most current concepts, processes, technologies, challenges, and opportunities. Topics as varied as plant optimization, advances in fermentation, carbon monetization, and industry salary trends are all available in this one, content-packed event.

The 2010 FEW will be held June 14-16 at the America’s Center in St. Louis.

conferences, Ethanol, Ethanol News

USDA Offers Biomass and Bioenergy Funding

Cindy Zimmerman

Agriculture Secretary Tom Vilsack today announced that Fiscal Year 2009 funding is once again available again for three USDA Farm Bill programs to promote increased production of biomass and bioenergy.

Applications for the Biorefinery Assistance Program, which uses loan guarantees to develop, construct, and retrofit commercial-scale biorefineries, must be received by June 1, 2010. Applications are also being accepted for remaining FY 2009 funding under the Repowering Assistance Program, which provides for payments to biorefineries in existence when the Farm Bill was passed to replace the use of fossil fuels in their operations with renewable energy from biomass. Biorefineries interested in obtaining funding must apply by June 15, 2010.

Tom VilsackFinally, those biomass producers eligible under the Bioenergy Program for Advanced Biofuels may also apply to receive payment from remaining FY 2009 funds. Applications must be received by May 30, 2010. Under this program, payments are made to eligible producers in rural areas to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

At the recent Commodity Classic, Secretary Vilsack noted that the administration is focused on expanding the biofuels industry. “We’re going to make sure that it is a national industry, not just focused in one particular area, one particular region, or one particular feed stock. There are enormous opportunities here in all parts of the country. Enormous opportunities for farmers and ranchers, enormous opportunities for rural America. And, there needs to be a concerted effort in growing and expanding this industry,” Vilsack told the crowd of more than 4,000 meeting in Anaheim, Calif. “That’s part of the strategy of USDA. So, we’re putting resources behind this, and we’re using our rural development resources to help build these refineries. We’re using our energy title of the farm bill to promote payments to farmers for feed stocks, to help build refineries, to retrofit existing refineries, to put people to work in rural communities.”

Listen to or download Vilsack’s speech from Commodity Classic here:

Audio, bioenergy, biofuels, biomass, Ethanol, Ethanol News, USDA

Big Oil Behind Yet Another Biofuels Research Paper

Joanna Schroeder

When discussing indirect land use it brings a popular saying to mind: If a tree falls in the forest and no one is around to hear it, does it still make a sound? Only in this situation the saying should be modified as follows: If a tree is cut down in a rainforest in Brazil to sell wood, should corn ethanol’s carbon footprint go up? Anyone with an ounce of commonsense would say no.

And here’s why: when a tree is cut down in Brazil, it is not to plant crops for biofuels, it is to sell the wood because the tree is of greater value as wood, then as part of the rainforest. Only then is the land converted to pasture and then to land for crops like soybeans. Sugarcane is rarely grown in the rainforest and Brazil doesn’t produce biofuels from corn. So what I just can’t seem to wrap my head around is what exactly does that tree have to do with corn ethanol?

So what has caused today’s diatribe on indirect land use? A new paper published this month in Bioscience Magazine titled, “Effects of US Maize Ethanol on Global Land Use and Greenhouse Gas Emissions: Estimating Market-mediated Responses.” The paper was authored by Thomas W. Hertel of Purdue University and five co-authors. In a nutshell, the authors argue that the greenhouse gas emission reductions from corn-based ethanol are canceled out when factoring in the increased carbon output from indirect land use change. Therefore, their contribution to California’s Low Carbon Fuel Standard is negligible, even when compared to conventional petroleum based fuels.

There are so many things wrong with this paper that I had a hard time deciding where to begin. Read More

Commentary, Ethanol, Indirect Land Use, Oil

R4R – Research for Renewables Event Launched

Joanna Schroeder

Everyone needs an excuse to go to Italy and now you have one – Solarexpo. Solarexpo in an international conference and expo on renewable energy and distributed generation. The event will be held on May 5-7, 2010 in Italy and as part of the event, is launching the R4R – Research for Renewables event.

R4R is a “research consortium” of sorts representing Italy’s entire range of renewable energy technologies. Organizations involved in research, technology developments, university spinoffs and innovative startups have the opportunity to be involved. The concept has been developed and managed in partnership with Galileia, a spinoff from the engineering faculty of the University of Padua that specializes in the energy sector.

“With the R4R project, Solarexpo is building on its innovative approach and continuing to create new spaces in which the vast worlds of renewable energy can come together. R4R is our way of engaging with parts of the renewables sector that would only be marginally interested in a traditional exhibition event: the world of research and new companies in the renewable energy field,” said Luca Zigale, scientific director of Solarexpo. “This is an environment that is evolving rapidly and is full of new talents, ideas and projects, but isn’t very visible for more established companies and public sector decision makers.”

Another interesting twist of the R4R is that is will have a dedicated hall in Solarexpo and 20 of the most promising startup companies will be selected to exhibit at no charge. In conjunction with the expo, a series of networking events, informational sessions and workshops will take place around two themes: “Research Day” and “Green Financing Day”.

But what may be the coolest thing about 4R4 is its support of young, innovative companies that have great ideas but not enough funding. This event will give these companies that audience they need to attract investments and bring these cutting-edge technologies to market.

You can learn more about the conference by clicking here.

conferences, International, Solar, Wind

Ethanol Takes A Bite out of Crude

Joanna Schroeder

Ethanol is taking a bite out of crude oil, this according to a recent OPEC report. An article published in The National, says that rising ethanol use in the United States is dampening demand for petroleum based fuels and this will be felt even more during the next few months.

Next week, OPEC ministers are getting ready to meet in Vienna, and last month OPEC participated in a preliminary report that estimates that $500 billion a year could be spent yer year on fossil-fuel based subsidies. In its latest monthly oil market report issued two days ago, the organization’s secretariat drew attention to an eight-fold increase in U.S. ethanol consumption since 2000. This use should grow as the E15 waiver, which allows consumers the choice to use up to 15 percent ethanol in conventional cars is expected to pass by late summer.

“With the continued rise in US [petrol] stocks and surging ethanol volumes in the [petrol] pool, as well as ample idle refinery capacity, any seasonal upwards movement in the [petrol] market is likely to be limited,” the OPEC report said as quoted by The National.

OPEC also noted in its report that its projected demand for crude oil continues to be less than production leading to an oversupply situation that amounts to around 1.5 million barrels per day (bpd). Typically, stocks begin to dwindle after the first of the year but this year, stocks actually increased. Regardless of the current surplus, OPEC raised its prediction of global oil demand by 100,000 bpd from last month’s report. On Wednesday, a barrel of oil sold just shy of $80.

Ethanol, Ethanol News, Oil

Novozymes Achieves Cellulosic Enzyme Breakthrough

Joanna Schroeder

Each day, cellulosic gets closer to becoming commercially viable in the marketplace. Two weeks ago, a major hurdle was overcome with the announcement that Novozymes’ enzyme Cellic® CTec2, used for cellulosic ethanol production with feedstocks such as corn stover and corn cobs, is now 50 cents per gallon. I had the opportunity to learn more about this breakthrough when I sat down with Thomas Videbaek, Executive President of Novozymes BioBusiness, at Commodity Classic.

Videbaek explained that Cellic is the first commercial product for cellulosic ethanol. With Cellic, you’ll be able to produce cellulosic ethanol using an enzyme cost of about 50 cents per gallon. “With this, we think that the enzyme part of producing cellulosic ethanol has been cracked,” said Videbaek. “Now we need to get out and starting producing it and we’re really, really excited about that.”

Novozymes is a partner with POET’s Project Liberty which will produce ethanol from corn cobs. I asked Videbaek for an update and he believes that with the enzyme breakthrough they will be able to produce cellulosic ethanol for around $2.35 per gallon. However, the expectation is that once Project Liberty is up and running, the cost will be reduced to around $1.90 per gallon. This will be monumental in that it will break the $2.00 per gallon barrier challenge of producing cellulosic ethanol.

This was a massive project for Novozymes who has been working on it for more than five years. “It’s the biggest project we’ve ever carried out,” said Videbaek. There were more than 150 people working on it in the past year alone.

In addition to corn stover and cobs as a feedstock, they are also working with wheat in Europe and have an operational pilot plant in Denmark. In addition, they are working with Brazilian ethanol producers to develop an enzyme to break down the bagasse.

You can learn more about Cellic by listening to my full interview with Thomas below.

Audio, Cellulosic, Commodity Classic, corn, Ethanol, Ethanol News

NCERC – Corn Ethanol Still Has Room to Grow

Joanna Schroeder

“Some people believe that corn ethanol is an old technology. We believe just the opposite,” said John Caupert, the Director for the National Corn-to-Ethanol Research Center (NCERC) during an interview with me at Commodity Classic. “We feel the corn ethanol industry is still in its infancy and through technological advancements, there’s much more to learn and prove in corn ethanol production.”

In the last two-to-three years, Caupert noted that there has been a major emphasis on technological improvements such as corn fractionation, and aneorbic digestion, things that would incorporate capital upgrades or capital investments in the ethanol plant. In terms of corn ethanol production, a lot of focus has been dedicated to advancements in fermentation ingredients such as enzymes and various strains of yeast.

The NCERC has also played a role in the debate over indirect land use. Caupert explained that they have done a lot of research that focuses on the value of how co-products improve the greenhouse gas footprint of fuel ethanol production.

“I think more often than not, we forget about the fact a corn ethanol plant in addition to producing fuel ethanol, also produces this high value livestock feed called distillers grains,” said Caupert.

They will continue to look at this data and make recommendation about how the co-products should add value to corn ethanol in the indirect land use arena.

Listen below to hear my entire interview with John.

Audio, Commodity Classic, corn, Ethanol, Ethanol News

Growth Energy Offers Funding for Blender Pumps

Cindy Zimmerman

Growth Energy’s Market Development team is now offering funding to retailers to assist in ethanol blender pump infrastructure. Grants of $2,500 and $5,000 are now available on a first come, first serve basis to vendors who wish to install new or convert existing equipment for ethanol fueling. These grants are in addition to any Federal or state grants or incentives a retailer may be eligible.

“There are over 8 million flexible fuel vehicles across the country with more being produced in each model year. Unfortunately, of the 161,000 gasoline stations in the U.S. only 2,200 offer E85 where FFVs may fuel up with a high level blend of domestic, renewable fuel such at 85% ethanol……….another 132 offer mid-level blends,” said Growth Energy Market Development VP, Phil Lampert. “Growth Energy is pleased to offer this assistance to retailers across the nation and we hope that they avail themselves of this unique opportunity.”

Growth Energy can also offer pump imaging and technical assistance along with the grants. You can find the two page outline of the Infrastructure Development Program by clicking here. To apply for the funding, click here.

blends, Ethanol, Growth Energy

Ethanol Producer Plans to Cut Water Use

Cindy Zimmerman

poet plantThe world’s largest ethanol producer plans to decrease water use in the production of ethanol by 22 percent over the next five years, which would result in a savings of one billion gallons of water per year.

In a presentation to employees today, POET CEO Jeff Broin said the company is committed to producing ethanol as sustainably as possible and minimizing its impact on natural resources.

poetWater reduction is the first goal of Ingreenuity, POET’s new initiative to improve the environmental performance of ethanol. The reductions will come primarily through installing a proprietary process developed by POET engineers that recycles cooling water rather than discharging it. The process has recently been installed in three POET Biorefining locations which now average 2 to 2.5 gallons of water per gallon of ethanol.

To kick off the initiative, Broin announced that the POET Foundation has committed more than $420,000 to the non-profit Global Health Ministries (GHM) over the same five-year period as POET’s water reduction goal. A portion of the funds will help GHM repair, construct and maintain 90 wells in Nigeria that that will give more than 300,000 people access to pure water.

Ethanol, POET